Bitcoin (BTC) Reaches New All-Time High Amid Spot Market Demand

Bitcoin (BTC) has reached a new all-time high (ATH), fueled by strong demand in spot markets and a surge in institutional inflows, according to Glassnode. The cryptocurrency's rally comes in the wake of the U.S. presidential election, which has been perceived as favorable for the crypto market.

Spot Market Momentum

The recent rally was primarily driven by significant buyer-side pressure in spot markets, particularly on major exchanges like Coinbase. The Cumulative Volume Delta (CVD) on Coinbase's spot market reached $143 million, indicating robust demand. This momentum has been a key factor in driving Bitcoin's price to new heights.

Institutional Interest and ETFs

Institutional interest has surged post-election, with significant inflows into U.S. spot ETFs. Assets under management for these ETFs increased by $6.8 billion over the past month, outpacing the $7.6 billion rise in CME futures open interest. This trend highlights a preference for direct spot exposure among institutional investors.

Impact of U.S. Election

The U.S. presidential election results have been a catalyst for Bitcoin's recent performance. Historically, elections have had a notable impact on Bitcoin's market dynamics. The current Republican administration is seen as crypto-friendly, contributing to the positive sentiment in the market.

During previous elections, Bitcoin experienced substantial realized capital inflows and price increases. The current cycle, while more modest, still shows a positive trend with a 27.9% price gain post-election to date.

Potential for Future Gains

Bitcoin's entry into a new ATH discovery phase has put over 95% of the circulating supply in profit. This phase is typically followed by significant profit-taking, yet current realized profits are below historical peaks, suggesting room for further growth.

The market is currently adjusting to potential shifts in crypto policy, which could influence future trends. With Bitcoin's spot price at $87.9k, nearing the upper statistical band at $94.9k, the market's demand momentum remains strong.

Overall, Bitcoin's recent rally highlights the strength of spot market demand and institutional interest, positioning the cryptocurrency for continued growth in the evolving market landscape.